News 44
As reports of fuel theft increase across the UK, leading fuel management firm Vectec is offering an innovative, comprehensive solution to counteract the growing use of powerful pumps capable of lifting hundreds of litres of diesel every minute.
The first of its kind, the new Metron4 24-hour fuel theft detection system is making waves for its ground-breaking technology which measures fuel through rate of change functionality, rather than simple quantity sensors.
The fully customisable system enables users to configure the trigger sensor based on individual usage levels on site, sparking a site-based beacon and klaxon, along with email notifications to designated staff, upon the pre-defined rate of change being witnessed. Integrated UPS ensures that the system continues to operate as normal even in the absence of mains power for effective and efficient response to theft.
The new system comes at a time when thieves are understood to be taking between 1,000 and 30,000 litres of fuel at a time from often unmanned sites such as ambulance stations, fire stations, and council premises. The advanced drilling techniques utilised by thieves today can create an urgent need for site cleanup which can, in many cases, amount to more than the cost of the lost fuel due to the potential severity of flooding.
Vectec’s Simon Fowler said; “When we heard about this growing problem from our clients, our first response was to identify an existing solution that would tick all the boxes, yet we found that a solution that met our strict standards didn’t seem to exist. We found that many of the pre-existing solutions out there were known for their false alerts caused by external factors, so as fuel management experts we came together to design and develop our very own detection system that looks at the rate of fuel change over a set period.”
The system utilises rate of change technology which ensures that alerts are only sent in instances of real risk. Simple to install, Vectec’s new solution can be used on existing above-ground and below-ground tanks, and is easy to install across a selection of sites.
July 1st saw a milestone reached by Valero Energy and the Co-op, with the biggest conversion of sites in one day that either company has ever attempted. The switch of 28 Co-op fuel sites to Valero supply in just one day was made possible by close collaboration between the two companies.
Valero, who last year agreed a long-term supply contract with the Co-op to be their principal fuel supplier, will now supply a total of 115 Co-op service stations across the UK. The sites are a mix of Co-op and Texaco branded.
Eddie Jenkinson, national fuels manager at Co-op, said; “Developing great partnerships is key to our approach and we are pleased to build on our work with Valero as we continue to create filling stations which are seen as a community hub locally – delivering the food and fuel needs that our members and customers need, conveniently.”
The ambitious goal was possible because of the introduction of an auto replenishment system,
Vendor Managed Inventory (VMI). The system gives the supplier a live data feed from the retailer’s fuel tanks that enables them to predict demand and deliver fuel to a site when needed. This allows better planning and management of product supply for the retailer.
Although some groundwork has been completed in advance, with the majority of sites having been assessed for fuel delivery standards before the lockdown, the change was not without its challenges.
Project communication and coordination had to be undertaken virtually, making some tasks more difficult to fulfill than usual.
All store managers were provided with a welcome pack, which was followed up with a review to ensure they were fully briefed and informed to help guarantee a seamless switch between suppliers.
Simon Fawkes, national account manager for Valero, said; “I was particularly impressed with the enthusiasm, interest and cooperation shown by all the Co-op store and team managers. A number of the sites had been supplied by Valero previously, so it is a real pleasure for Valero to welcome them back and to welcome the new ones too. In addition to these 28 sites, a further two sites will be added in the coming months, bringing the total to 30.”
Andrew Cox, Valero’s director of sales and marketing, added; “We’ve worked with the Co-op since 2005 and our long-term partnership has certainly helped facilitate our success in delivering this project. I’m thrilled that we’re now supplying a further 28 Co-op sites and it’s great news that we’ve been able to bring this project together successfully in such challenging circumstances.”
Kettlewell Fuels director Janet Kettlewell was inaugurated as the 33rd President of UKIFDA on the 24th June 2020, during the trade association’s first virtual AGM.
Taking over the Presidency from Jodie Allan, who held the post for 3 years, Janet will head the association’s management committee. Her new role will involve working closely with chief executive Guy Pulham to optimise the work of the association in lobbying government on energy policy and the delivery of services for both distributor and associate members.
A UKIFDA management committee member for some 5 years and regional representative for Yorkshire and the North East of England, Janet has seen the trade association transform itself into a modern, forward-thinking and highly ambitious organisation that is ready for the next stage of its development.
Janet brings a wealth of sector experience and knowledge to the role, having joined her Yorkshire based family business Kettlewell Fuels, in 1996. Janet recently undertook an MBO of the business with husband Trevor, taking ownership of Kettlewell Fuels outright from the Kettlewell family.
Commenting on her appointment Janet Kettlewell said; “I am absolutely delighted to have been given this opportunity to use my 24 years experience for the good of the industry.
“I aim to continue the sterling work of past presidents on raising standards in the industry and making further significant progress on how the industry meets the decarbonisation targets set by the governments of the UK and Ireland. As the market continues to develop and change, as we enter a new era of liquid fuels, we will embrace all the challenges that lie ahead for our sector with enthusiasm and passion and I am absolutely sure that UKIFDA and its members will continue to thrive.
“I cannot wait to start working with the fantastic team at UKIFDA and the exceptional management committee to see what the next two years bring.”
UKIFDA chief executive Guy Pulham adds; “We all warmly welcome Janet as our new President – and we know she will make an excellent and fitting successor to Jodie. The team at UKIFDA has worked closely with Janet in her roles as regional representative and Vice President but also directly with her company Kettlewell Fuels, who have been UKIFDA Members for 24 years. She will prove a fantastic asset and a great advocate of our campaign to secure the much-needed support from government to ensure biofuels play a key role in the future of the 1.5m heating oil consumers in the UK and 686,000 in Ireland who are not on the gas grids.”
The Tank Storage Association (TSA) has further increased its representation of the UK’s bulk liquid storage sector with the addition of a new member, Stanlow Terminals Ltd.
Peter Davidson, executive director of the TSA, commented; “We are delighted to be welcoming Stanlow Terminals to the TSA as a full member. Through our strong and diverse membership, we become a more powerful voice for the UK’s bulk liquid storage sector and associated logistics. Together, we look forward to continuing to champion the economic and strategic value of UK terminals.”
Patrick Walters, chief executive officer of Stanlow Terminals Ltd, said; “I am delighted that Stanlow Terminals has joined the Tank Storage Association. The company was formed earlier this year and our tanks and related infrastructure in the North-West now contribute to the UK’s independent tank storage capacity. The TSA is an important organisation for companies engaged in the storage of bulk liquids and the provision of products and services to the sector. It provides an excellent platform to collaborate across the sector in the UK and abroad. The team at Stanlow Terminals looks forward to playing an active membership role.”
Slicker Recycling Limited, the UK’s largest collector and processor of used waste lubricating oil, has announced the acquisition of RE:Group (UK) Ltd.
RE:Group, based in Hull, provides waste oil collection and processing, industrial services and advanced fuel manufacturing.
Commenting on the acquisition, Mark Olpin managing director of Slicker Recycling, which also provides total waste management solutions to its extensive customer base, said; “The acquisition of RE:Group is an excellent strategic fit, increasing our UK storage capacity, geographic reach, export options, innovative process capabilities and new products and services to offer our customers. Re:Group is a solid well run business and we are extremely excited by the opportunities this acquisition provides.”
Last year Slicker, through its parent company Greenbottle Limited, co-invested in a 100,000 tonne per annum base oil re-refinery situated in Denmark.
RE:Groups’ managing director Paul Waine, will remain with the business and has joined the board of Greenbottle. Paul said; “Slicker Recycling has in recent years invested significantly more in this sector than anyone else, so the chance to integrate RE:Group and also play a part in the continued growth story is a fantastic opportunity.“
Mark Olpin added; “RE:Group is the fourth acquisition in as many years for Slicker Recycling, which together with the investment in the Danish re-refinery, shows both the level of support and ambition the shareholders have for the business.”
Moray businessman Stephen Scott has been appointed a board member for Elgin City Football Club.
The former commercial property lawyer was born and brought up in Elgin before his studies and work took him to Edinburgh. Now back in Moray, Stephen owns the Gleaner Oils business in Elgin with his wife Jane.
A spokesperson for Elgin FC explains how the club have waited patiently for this appointment; “Stephen’s wife Jane is a Lossie girl, and about six years ago, they bought out her Uncle’s interest in what had been her family’s business, thus becoming 100% owners of Gleaner.
“Stephen openly professes to have had a zero per cent knowledge of the fuel business at that time but was driven by a desire to protect the staff as well as the dependent pensioners – about 360 people in total. He put in many 18 hour days as he gained an understanding of how the business works, which caused him to decline politely some previous overtures for him to join the City Board – because he worried about his business commitments causing him to let the Club down. He now feels though that the business and its subsidiaries are in a sufficiently good place that he can devote whatever energies are required to the Club.”
Stephen told the club’s website; “My late father Alex (a well-known chartered surveyor in Elgin) and my uncle Ed, mum’s brother (former editor of the Strathspey & Badenoch Herald), started taking me to Borough Briggs when I was a wee boy.
“Dad bought me my first season ticket in summer 1968 at the tender age of three, going on four. As those who know me will attest, I have been hooked on the club ever since. Our son Evan said to me when this decision was reached that it would have made Grandad very proud, as he was also an Elgin boy through and through. I agree, and that means the world to me.
“I look forward to working with all the great people on the board in furtherance of the ambitions of the club which we all love.”
Gleaner has multiple signs (one of which is LARGE) dotted strategically around Borough Briggs. Stephen’s association with his hometown club led him to form a Gullane branch of the supporters’ club, which has a banner permanently on display at Borough Briggs. He used to stay with his family in the East Lothian coastal town before relocating back to Moray.
In the photo Stephen is seen presenting the Man of the Match award to Rabin Omar, after he scored a wonder goal in a 4 – 1 victory against Annan last November.
Elgin chairman Graham Tatters said; “He’s a man with an unbelievable amount of experience in different matters in the business world. He’s going to be a real asset to the club.”
Automotive industry charity, Ben, has announced the cancellation of its annual flagship event, Ben Ball, in December. As a result of COVID-19, the event won’t be taking place this year for the first time since World War II, contributing to a potential income shortfall of £1m for Ben this year.
Having asked those who regularly attend Ben Ball if they would consider attending this December, the majority of past attendees said they wouldn’t due to concerns surrounding safety in light of COVID-19 and uncertainty around budgets.
The charity continues to support more and more automotive industry people with their health and wellbeing during this challenging time. Now, more than ever before, automotive people need the support of Ben to help them cope with anxiety, depression, money worries, bereavement and loneliness. However, this increased support comes at a time when the charity’s income has fallen as a result of the Coronavirus and the impact it has had on the finances of companies and individuals in the industry.
The cancellation of Ben Ball, along with the postponement of other fundraising events / initiatives, as well as a decline in donations, means Ben is anticipating a £1m income shortfall this year, similar to many other charities. This is why the charity is appealing for those who can, to continue their support and keep providing vital funds so Ben can always be there for those who are struggling.
Matt Wigginton, fundraising director at Ben, said; “Making the decision to cancel Ben Ball is one of the hardest I’ve ever had to make, however with the uncertainty of the situation surrounding COVID-19 and the impact it has had on our industry, it was, unfortunately, inevitable.
“We are living through unprecedented times and this means making tough decisions, but also being adaptable, so we plan to run a virtual fundraising event on 9th December instead, which we hope our industry will get involved in. So watch this space, we’ll reveal more in the coming months!
“We would also like to take this opportunity to give our heartfelt thanks to those who have continued to support Ben during this time – your support is more valuable now than ever before. We look forward to seeing friends, old and new, at next year’s event!”
A FuelsEurope pathway describing how low-carbon liquid fuels could enable the transport sector to contribute to EU’s climate neutrality objective by 2050, has been welcomed by UKPIA. The ‘Clean Fuels for All’ pathway also shows that intermediate CO2 reductions of 100 million tonnes (Mt) are achievable by 2035.
John Cooper, director general of FuelsEurope, commented; “Today we are setting out an ambitious pathway for enabling transport to contribute to EU’s climate neutrality ambition by 2050, based on scale up of low-carbon-liquid fuels (LCLF) supply and use, across several transport sectors. With a clear societal and scientific case for far reaching climate action and taking into account the economic and social impacts of the coronavirus crisis, we respect that there will be no return to business as usual for the fuels industries.“
Partnerships for policy discussions
“With the focus increasingly turning to recovery and new investments, we believe now is the time to start policy discussions with EU and national policy makers, and customer stakeholders to design the enabling policy framework for the deployment of these essential low-carbon fuels.”
Low-carbon liquid fuels have a strategic role to play in the transition to a climate-neutral economy by 2050, particularly in sectors such as aviation, maritime and heavy-duty transport where no equivalent technological alternatives currently exist. These sustainable fuels are from non-petroleum origin with no or very limited, CO2 emissions during their production and use. First blended with conventional fuels, these low-carbon fuels will progressively replace fossil-based fuels.
John Cooper stressed; “Complementary to electrification and hydrogen technologies, low carbon liquid fuels will be essential throughout the energy transition and beyond 2050, ensuring security of supply, providing consumer choice and also building Europe’s industrial leadership.” He added; “We have worked very closely with our member companies over the last 3 years on the low carbon pathways for liquid fuels. This thinking has been the starting point for development of an extensive technology set by our industry which now has potential to be deployed across Europe to deliver low-carbon liquid fuels at substantial scale.”
A pathway aligned with the UKPIA vision
UKPIA voiced support for the FuelsEurope pathway which, it says, aligns closely with its own Future Vision Report, released in July 2019. The report outlined a belief that the downstream oil sector can be a force for positive change that can help all users of our products to reduce their carbon footprint.
‘Clean Fuels for All’ is the latest publication on the role of the downstream oil sector in a lower carbon world. The pathway follows on from FuelsEurope’s 2050 Vision and UKPIA’s own Future Vision, which sets out a potential blueprint for how proven and emerging technologies make the UK downstream oil sector a vital part of economic growth, while continuing to meet government net-zero ambitions.
UKPIA director general Stephen Marcos Jones, said; “Achieving the enormously challenging targets of reducing emissions to net-zero by 2050, will require a significant transformation of the UK and EU energy systems but the downstream oil sector and low carbon fuels can have a large part to play. FuelsEurope’s latest publication “Clean Fuels for All” and UKPIA’s Future Vision, continue to show the positive role in decarbonisation that our sector can have. However, it will require pragmatic and supportive policymaking to unlock this potential.”
Ambitious but achievable
The pathway could enable reducing emissions from transport in 2035 by up to 100Mt CO2/y and contributing to EU’s climate neutrality ambition by 2050 as John Cooper further outlined; “Evaluation of scenarios by Concawe describes first new plants to produce up to 30 MToe of low-carbon fuels by 2030, with an investment cost estimated at €30- €40 Billion. This would include several first-of-a-kind plants at industrial size for the newest technologies.
“By 2050, depending on the scenario and technology cost evolution, up to 150MToe of fuels could be produced with the cumulated investments in the range €400-€650 Billion.
“In the most ambitious scenario, climate neutrality could be achieved for all remaining liquid fuel in road transport, with a 50% reduction in carbon intensity for EU’s aviation and maritime sectors. All of these achievements would be fully consistent with the Clean Planet for All scenario.”
FuelsEurope is outlining a set of policy principles, which it believes is central to delivering the industry’s climate-neutral ambition, with these points serving as a start for discussion with policymakers, supply chain partners and customer groups.
John Cooper concluded; “This pathway is ambitious, but achievable with multi-stakeholder collaboration. These new technologies are exciting but capital-intensive and their development at scale will require investor confidence and political vision. Everyone must be on board. We call on EU policymakers to establish a high-level dialogue with all relevant stakeholders as soon as possible. For the fuels industry’s part, we are ready to take the lead.”
Click here to subscribe to Fuel Oil News, which next month features an in-depth analysis of the roles of alternative liquid fuels and hydrogen in relation to the UK government’s decarbonisation ambition.
The trade association, UKIFDA, whose members supply not only heating oil for homes and businesses but also fuel for agriculture, construction, road transport, marine fuels and importantly fuel for back-up generators for hospitals, schools, care homes and data centres across Ireland, congratulates Fianna Fáil, Fine Gael and the Green Party on being elected to form the new government with Leo Varadkar and Micheál Martin sharing the Taoiseach over the 5 year period but urge consideration of alternative home heating solutions in the future energy plan.
UKIFDA chief executive Guy Pulham comments; “We want to work with ministers within government and newly elected Taoiseach Micheál Martin, who will hold the post until 2022 when Leo Varadkar takes over, in developing a pathway for off-grid heating in rural communities to help to achieve ambitions for a net-zero carbon economy. We are though, disappointed that there is not much detail in the published ‘Programme For Government – Our Shared Future’ with no specifics on numbers behind all the objectives. They say they are developing a new area-based and one-stop-shop approach to retrofitting, to upgrade at least 500,000 homes to a B2 by 2030 and provide €5 billion to part fund a socially progressive national retrofitting programme, targeting all homes but with a particular emphasis on the Midlands region and on social and low-income tenancies, but with the effects of COVID 19 on the economy how is this being done?”
Financial disadvantages must be avoided
“We will be emphasising to the government that we must not put the 686,000 oil heated homes across Ireland at a disadvantage. Our supply chain, for domestic liquid fuels (used for home heating and hot water) accepts the urgent need to decarbonise heating. Liquid fuel, more specifically a bio product, can be part of the solution to achieve net zero. We believe large scale electrification through the use of heat pumps is not the answer and government need to look at alternatives as this is not feasible, due to high installation and running costs of installing heat pumps for off grid homeowners.
“Importantly though, we are hopeful that statements such as – “As we set our society on a trajectory towards net zero emissions by 2050, it is vital that there is adequate time and effort devoted to working with communities and sectors in designing and delivering the pathway to achieve the goal in a fair way.” means the government are open to talking to our industry about biofuels.”
The John Lewis Partnership has announced that it is stepping up its commitment to reducing carbon emissions by building a dedicated biomethane gas filling station to enable its largest heavy goods vehicles to use a low-carbon alternative to diesel. This will aid the Partnership’s ambition to stop using fossil fuels across its entire 4,800 strong transport fleet by 2030.
Serving approximately 120 Waitrose heavy goods trucks, the vehicles will run on biomethane made from food waste and waste materials rather than diesel. This will reduce CO2 emissions by 80%, with each truck saving over 100 tonnes of CO2 every year.
The new biomethane gas filling station will be built in conjunction with Air Liquide and will open at the Partnership’s head office in Bracknell in December 2020, making it the business’s first on-site gas filling station. It will facilitate the conversion of the Bracknell Waitrose fleet to biomethane and complement gas filling stations already in use near to John Lewis and Waitrose regional distribution centres in Leyland, Lancashire, and in Northampton.
Since 2015, 85 of the Partnership’s heavy diesel vehicles have already been replaced with biomethane trucks, and a further 143 will be purchased and in operation by the end of 2020, making this the largest order of biomethane trucks in the UK.
All vehicles to run on non-fossil fuels by 2030
To reduce carbon emissions across its transport network further, the Partnership’s ambition is to eliminate fossil fuels from its commercial vehicle and car fleet by 2030. This radical initiative could see 1,750 electric vans and light trucks introduced and approximately 750 refrigerated trailers converted from diesel to electric drive. In addition, the Partnership’s 1,300 strong car fleet would become 100% electric and any remaining vehicles that could not be converted to biomethane or electric will use HVO biodiesel.
Justin Laney, partner & general manager of Central Transport at the John Lewis Partnership, said; “The evidence of climate change is all around us, so it’s important we act now using available technology rather than wait for unproven solutions to appear. We are working hard towards our new aim of removing all fossil fuel from our transport fleet by 2030, which will reduce our carbon emissions by over half a million tonnes and gets us well on the way to our ultimate target of operating a net zero carbon emission fleet.”
CODAS has launched CODAS Fleet, its flagship mapping and routing solution, bringing automated, optimised, entire fleet scheduling to CODAS, dramatically simplifying the route planning process, saving time and reducing costs.
The highly sophisticated, cloud-based scheduling algorithm, fully embedded in CODAS, enables users to rapidly create a robust transport plan that balances customer service with operational efficiency, adhering to customer, vehicle, driver, road, depot and product constraints, without the need to rekey data or exchange any files.
Time and cost efficiency
Statistics show that automated scheduling tools often save businesses up to 20% on fuel costs alone compared to routing manually.
Intelligent, multi-vehicle scheduling at the push of a button, provides CODAS Fleet users with a powerful facility for managing costs and maximising fleet performance, whilst meeting or exceeding customer expectations.
For more details, please visit the CODAS website: www.codas.com
Galway-headquartered Magnus has introduced its first product to the oil and lubricants industry – a truly wireless, battery-driven, radar technology-based oil level monitor that can be installed on tanks without holes or alterations.
The monitor is unaffected by environmental factors such as temperature, dust or humidity, which means that even in varying weather conditions, the readings can be relied on and are highly accurate: +/- 5mm to a range of 4 metres. Being battery-driven, it has the ability to run for up to five years with a high frequency of measurement and is suitable for domestic users as well as large scale industry including depot tanks, waste oil storage and agricultural usage.
Managing director, Shankar Ganesh Jayagopi, commented; “Before launching Magnus Monitors, the team thoroughly assessed the existing offerings for customers in the oil distribution marketplace. The same problems came up time and again – access to the tank for an accurate reading meant that a hole needed to be drilled in it, readings were often unreliable due to weather conditions and in general, options for tank monitoring were expensive and usually mains connected. We are excited to have developed a smarter radar-based monitoring solution that we are confident surpasses the capability of existing devices in the marketplace but is also cost-effective.”
The monitors are supported by an app which allows the consumer to monitor oil usage as they would their gas or electricity supply. It also provides a platform for oil distributors to communicate directly with their customer base. Distributors can also use the fully managed Magnus platform with its predictive analytics, allowing operators to plan routes to avoid multiple trips to the same area. This reduces both the wear and tear on tankers and the carbon footprint. It also provides visibility into customers’ tanks enabling a proactive rather than reactive approach.
For more information: sales@magnusmonitors.com
Centre Tank Services Ltd (CTS) has added another reputable, quality, and well-known brand to its list of distributorships with the announcement that it is the new agent of GoldenRod fuel tank filters for the UK and Ireland.
Goldenrod has been a leading filter brand, particularly popular in the agricultural market thanks to their compatibility with gravity systems, for many years. Their range of filters, designed for the removal of either particles or water content from diesel, petrol, kerosene and biofuels, includes the 495 Fuel Tank Filter, 496 Water Block Fuel Tank Filter and 497 BIO-FLO Fuel Tank Filter.
GoldenRod filters from US based Dutton-Lainson group, are widely recognised in the fuel industry thanks to their distinctive amber coloured bowl. Dutton Lainson were established in 1886 and have gone from a manufacturer of agricultural goods, to a leading manufacturer of quality products for the agricultural, marine, industrial, and automotive markets all over the world. This includes their market leading GoldenRod fuel tank filter range, making them a perfect addition to the distributorships held by Centre Tank Services.
As the new agent for the UK and Ireland, CTS has heavily invested in stock levels to remain a reliable source to its network of distributors.
Buyers or resellers should contact CTS for trade and quantity-based pricing.
Shrewsbury-based Morris Lubricants, which celebrated its 150th birthday last December, has received the green light from its board to invest £1.6m in two major projects to improve production and reception facilities.
The first project will see production lines brought together in one location at the Castle Foregate works and a brand-new array of storage tanks installed to serve them.
“Workflow and material handling will be optimised and blending facilities will be enhanced to enable us to make smaller volumes of lubricants more efficiently,” said managing director Chris Slezakowski. “This will meet the needs of a changing market where our range of premium products is a key strength.”
The second project will refurbish and upgrade the reception area of the company’s offices to provide up-to-date meeting facilities befitting a leading supplier of premium lubricants.
Both projects will be led by Steve Reading, group engineering manager, who last year designed and managed the installation of a new £200,000 digitally controlled bulk filling line.
“The time scale for completion of the production facilities is around two years because it’s important that we maintain supplies while carrying out the work,” added Slezakowski. “We will be relocating stores, production lines and workstations to free up space to build the new facilities. The reception area project will be completed much quicker.
“I am excited about the board’s confidence in the business and the benefits that these investments will bring to the long-term future of Morris Lubricants.”
The Covid-19 outbreak may have delayed this process and there will be a review in July to see how it can progress. The investment demonstrates the necessity to be constantly forward thinking as well as the company’s ambition to come out of this crisis stronger and more efficient than ever. In addition to the new bulk filling line, Morris Lubricants also invested £150,000 last year to improve its delivery service, ensuring that most customers receive their orders within 48 hours. The company is also expected to announce plans, later this year, to develop its sister business, GB Lubricants in Gateshead.
With a brand-new website and the introduction of a sister company, Halso UK Fuels Ltd continues its exciting journey from modest beginnings to a thriving business recognised as one of the country’s experts in petroleum, gas & oil supply and distribution.
Progressing from its launch in a caravan in 1967 through the wooden huts which still exist to the current modern offices it has always been renowned for excellent customer care and service which remain second to none.
Supplying fuels to industrial, commercial and domestic customers, this family run business is now in its third generation. Emma Osborn-Wilkes, granddaughter of founder Sid Osborn, is managing director of both Halso and its new sister company EL Oils which has been trading in some capacity for the last 50 years.
Emma commented; “We still supply fuel, oils and lubricants to our local farmers and domestic, residential customers but now we also service commercial clients nationwide.
“It was little over 12 months ago we decided to diversify, offering our lubricants, oils and greases under our sister brand EL Oils. We find this to be a much cleaner way of showcasing our varied product portfolio.”
Emma continued; “Halso continues to be our brand for fuel management and distillates, and EL Oils offers our additional products, as well as services including tank cleaning, oil changes and tank monitoring.
“EL Oils, like Halso, is a very proud family business with high standards offering a personal service to all customers. We want to seamlessly support all of our commercial or domestic clients with their fuel, oil and lubricant needs. It’s our job to power your business and home.”
An agreement to extend the deal on record production cuts until the end of July which was reached at a virtual meeting of OPEC+ on 4 June, saw oil prices climb to their highest level in 3 months.
In addition to the extension, it was announced that Saudi Arabia will be reversing nearly all the discounts on its crude, with some of the increases resulting in the sharpest jumps in over 20 years.
Michael Burns, energy partner at law firm Ashurst, commented; “The extension of cuts has seen prices rise. Hopefully this provides a platform for companies that a few weeks ago were looking extremely challenged to build from. However, the fall in demand from coronavirus remains a real issue for markets and companies to wrestle with.”
The days running up to the meeting saw prices rise to almost $40/bbl as expectations grew for an extension of the OPEC+ production cut, with OPEC and Russia reportedly moving closer to an agreement for the July and August period then dropping back as doubts began to emerge over the next step.
Russia and Saudi Arabia’s relations were in the spotlight once again during the virtual meeting, brought forward from the 9 June, with Moscow indicating a desire to ease constraints on cuts, while the Kingdom showed its preference for measures to remain the same throughout July. The outcome was a victory for both however, who put their price war behind them to jointly persuade Nigeria, Iraq and others to fulfil their promises to cut production.
It was in April during the first wave of the COVID-19 pandemic, that OPEC+ agreed to cut output by a record 9.7 million barrels per day, equivalent to around 10% of global output. This decision was made in order to lift prices that had dropped dramatically due to near-worldwide lockdown measures. The resultant reduction in output not only from OPEC+ members (predominantly Saudi Arabia and Russia) but also from the USA and Canada, helped to lift oil prices back around $35 per barrel.
With several countries easing lockdown measures creating fears of a second wave of the virus, the decision to extend production cuts for one month, whilst falling short of market hopes, will help to underpin the oil market’s recovery and could see prices rise to as much as $50 a barrel.
The cartel will meet in the second half of the month to review the oil market once again with the next full ministerial OPEC+ meeting scheduled for 30 November.
In planning prior to the Coronavirus lockdown, North Yorkshire-based independent fuel oil supplier, Kettlewell Fuels has now completed a management buyout (MBO) by its senior leadership team.
Managed by Janet and Trevor Kettlewell since 1996, the MBO means the husband and wife team takes ownership of the business outright from the Kettlewell family, which also owns other family businesses.
Continuing as a Phillips 66 authorised JET distributor, it is business as usual for customers of the company which delivers domestic heating oil, agricultural gas oil and commercial DERV to homes, farms and businesses across North Yorkshire. Janet Kettlewell retains responsibility for the operational and customer service side of the business and the same experienced and friendly, local customer service team will continue to help customers make the right fuel choices for their needs.
Trevor Kettlewell will carry on managing the fleet and delivery logistics supported by the highly trained Kettlewell Fuels drivers who ensure customers receive a swift, reliable delivery service in a safe and timely manner.
Expanding the team and premises
Strengthening the company’s management team, Janet and Trevor are delighted to be joined on the board of directors by John Skinner. John was previously finance director and company secretary for 15 years at one of Yorkshire’s leading estate agents, having experience also in the healthcare, packaging and banking sectors.
The MBO also provides the opportunity for the business to move to larger premises which will still be within the Melmerby area. Commenting on the MBO, Janet Kettlewell said; “It’s another step forward in Kettlewell Fuels’ 33-year history.
“Kettlewell Fuels is more than just a business to us. Taking sole control means we will be in a position to focus our energies on offering our customers a service that suits their changing needs whilst ensuring they continue to receive the outstanding level of service that has enabled us to grow the business. Our relationship with the other Kettlewell companies, Kettlewell Commercials and M Kettlewell (Melmerby), will continue and we’re really looking forward to exciting times ahead.”
Advisory assistance was provided by law firm Schofield Sweeney and accountants Saffery Champness, with completion taking place at a safe social distance in line with government guidance.
Martin Holden, who advised on behalf of Saffery Champness, said; “Janet and Trevor have some exciting plans for the future direction of the business and this MBO provides a strong foundation for growth.
“We are delighted to have been able to offer the support they needed to achieve their ambition and look forward to watching the business flourish under their continued leadership.”
David Strachan, who led the Schofield Sweeney team, added; “My colleague Lucy Holroyd and I were also delighted to advise on this significant development for Kettlewell Fuels, and we wish the company every success in future”.
BP has announced plans to cut 10,000 jobs worldwide following the global slump in demand for oil. Having paused redundancies during the peak of the pandemic the CEO of the oil giant told staff at the start of this week that the company is responding to the economic fallout of the Covid-19 pandemic.
Chief executive Bernard Looney laid the blame squarely at the door of the drop in oil prices and the global collapse in demand for oil owing to the coronavirus pandemic as he told staff; “You are already aware that, beyond the clear human tragedy, there has been widespread economic fallout, along with consequences for our industry and our company.
“The oil price has plunged well below the level we need to turn a profit. We are spending much, much more than we make – I am talking millions of dollars, every day. And as a result, our net debt rose by $6bn in the first quarter.”
An industry reducing costs
The job losses represent about 15% of the oil group’s 70,000 staff worldwide with the jobs due to go by the end of the year. The London-headquartered group has not said how many jobs will be lost in the UK but it is thought the figure could be close to 2,000. BP employs around 15,000 people in the UK with the firm’s office-based workers expected to bear the brunt of the redundancies which will not affect any of its retail staff.
The changes are expected to significantly impact its senior ranks, cutting the number of group leaders by a third with the company saying it will make the senior structure flatter. The CEO emphasised that BP must reinvent itself and emerge from the crisis a “leaner, faster-moving and lower carbon company”.
Looney, who took over as chief executive of 111-year-old BP in February, said: “We will now begin a process that will see close to 10,000 people leaving BP – most by the end of this year. The majority of people affected will be in office-based jobs. We are protecting the frontline of the company and, as always, prioritising safe and reliable operations.”
The Brent crude oil price started the year at about $64 (£50) a barrel but plunged as low as $19 in April as the pandemic took hold. It has since recovered to about $35 a barrel but the drop has taken its toll on the industry.
Professor David Elmes, energy expert from Warwick Business School, said; “The job losses at BP are symptomatic of the wider challenges facing the industry.
“Coronavirus has reduced oil demand and the price per barrel has plummeted, but that has happened in a wider context of short-term and long-term decline.”
“All firms in the sector will all be looking at how they can cut costs, shift their activities to the lowest cost field, trim investment, and thinking hard about what dividend they can pay.”
The latest addition to the Crown Oil tanker fleet is ready to deliver HVO across the UK.
The 8-wheeler DAF tanker joined Crown Oil’s fleet last week, and with the registration number BIO HVO, it is no secret as to what it will be carrying across the country.
A spokesperson for Bury based Crown Oil, said; “We’re excited to announce a brand new edition to our fleet! Our green tanker is ready to deliver our green diesel across the UK.”
Speedy Fuels and Lubricants, a member of the Crown Group established in 2012 to serve the London region, also added a 6-wheeler DAF tanker to its own fleet in March this year. The company, which has gone from strength to strength and now deliver to customers nationwide also uses its new tanker to transport HVO.
Find out more about Crown Oil’s journey into low carbon fuels in the next issue of Fuel Oil News out in July.
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Last week, in another significant industry step towards contributing to the UK Government’s Net zero objectives, Phillips 66, Uniper and VPI Immingham announced a memorandum of understanding to co-develop Humber Zero.
A multi-million pound carbon capture and hydrogen project on the South Humber Bank, Humber Zero will decarbonise eight million tonnes per annum of CO2 emissions, with the potential to target 30 million tonnes of CO2 emissions from the wider Humber cluster to the west of Immingham
Recent changes to Government advice on the use of face covers mean it is now recommended that individuals cover their faces when out in public to help stop the spread of COVID-19.
In a generous response, Northern-based Craggs Energy has sprung into action and produced over 1,200 face covers which have been distributed free to customers and communities across Yorkshire and the North West.
Chris Bingham, CEO at Craggs Energy said; “As keyworkers, we have adapted the way we work and our number one priority is the safety and wellbeing of our colleagues, their families and our whole community. We are determined to help as best we can and give something back.
“We already produce our own water removal device called a TankSponge Eco and we decided to engage this resource to start making the face covers. All of the face covers we have produced are free of charge and we are looking to supply two per customer with an instructional leaflet on how best to use.”
Lee Roe, Ribble FM director & station manager who manages the Ribble FM’s COVID-19 support programme said; “Craggs Energy has donated 50 face covers to our COVID-19 support programme which are designed to be used when out and about. They conform to government specifications for shielding masks and are designed to be worn when shopping etc. These are totally free and available to those who require this protection the most.
“There are so many people who just don’t get looked after these days but with the generosity of local companies like Craggs Energy and the exposure from Ribble FM together we are looking to change that.”
The initial response has been overwhelming and almost all Craggs Energy customers have jumped at the chance for the free face covers which are available to all domestic, commercial and agricultural customers.
Craggs Energy is also working with local initiatives like the Ribble FM Support Programme and the Overgate Hospice to provide bulk donations to local communities in the North West and throughout Yorkshire.
The leading representative body for the UK’s offshore oil and gas industry, OGUK, has called for the transition to net-zero greenhouse gas emissions to be at the heart of its recovery plan after a stark warning that up to 30,000 industry jobs could be lost.
UKIFDA has submitted its views on the Government’s consultation on the introduction of E10 petrol at filling stations across the UK which closed on 3 May and called for views from industry on the best way to introduce E10 petrol as the standard grade of petrol at forecourts from 2021.
“We have expressed our full support for the Government’s proposals to replace the 95 E5 Premium grade petrol with E10 petrol, and think a direct replacement is the right way to ensure successful implementation and take-up by consumers,” says Guy Pulham, UKIFDA chief executive.
“The introduction of E10 petrol would drastically reduce emissions from petrol vehicles – according to the Government, it could lead to a CO2 saving of 750,000 tonnes, which is equivalent in emissions reductions to taking up to 350,000 cars off the road every year.
“We agree that increasing the bioethanol percentage from up to 5% in current E5 petrol to up to 10% in E10 petrol can only be a good thing. The E10 blend is already in use in other countries across Europe including France, Germany, Belgium and Finland, and its introduction in the UK is very welcome – where the majority of petrol cars could use E10 petrol from its introduction.”
Since 2011, all modern petrol cars have been designed to use E10 effectively, and most petrol cars since 2000 have also been certified to use the proposed blend. However, there is still a small number of older and classic cars not able to use E10, which is why the Government is proposing the ongoing availability of E5 petrol.
As a fifth-generation family business that has been operating in East Yorkshire for more than 140 years, J.R. Rix & Sons has always believed in supporting the local community.
That’s why during the coronavirus outbreak, the company has gone out of its way to provide help and resources to local businesses and organisations hit by the pandemic, and those fighting to contain it.
In one such move, J.R. Rix & Sons donated £10,000 to entrepreneur Alex Youden who designed a face mask and respirator that protects frontline medical staff against COVID-19.
Alex makes the masks on this 3D printer and the donation enabled him to buy raw materials. J.R. Rix & Sons also provided furloughed volunteers to help distribute the PPE.
The family business has also dug deep within its own stores to donate products to help protect people and to carry on with daily life.
Rix-owned businesses Rix Petroleum, Victory Leisure Homes and Jordans Cars donated spare PPE to frontline workers at Hull City Council, and the business gave a number of used laptops to underprivileged children at a primary school, enabling them to continue their education at home.
Victory Leisure Homes, the group’s holiday home and lodge manufacturing business, is also making an isolation unit for a local care home, so elderly residents can receive visits from family members.
Rory Clarke, managing director of J.R. Rix & Sons, said everyone had to pull together during the crisis and the company was delighted to do what it could.
He said: “We’ve said from the start of the outbreak that it is the duty of everyone who can help to do so.
“As a fifth-generation family company with deep ties to our local community, we’ve tried to do that in as many was as we can.”